Summary: Suprabhat Lala challenged his firing from the National Stock Exchange (NSE), claiming it was unfair and violated his rights. The court dismissed his petition, stating it was a private matter not suitable for a court order that usually applies to public issues.
Suprabhat Lala, who had been with the NSE since 2001, was let go on July 24, 2023. He argued that his firing was illegal and violated his rights under certain parts of the Constitution. Lala wanted his job back and payment of withheld salaries and bonuses.
Lala's firing was based on a part of his job contract that allowed the company to fire him with three months' notice or pay. He received a cheque for Rs. 21,58,104 as payment instead of notice. The NSE said organizational changes and his job being unnecessary were reasons for his firing.
"As a result of this redundancy... it is decided to terminate your services from the Company with immediate effect." - Termination Letter
The NSE argued that Lala's firing was a private contract issue, not a public law matter. They claimed that the court petition was not valid as the NSE is not considered a 'State' under the Constitution. The court agreed, noting that the dispute was a private matter.
The court, led by Chief Justice Shree Chandrashekhar and Justice Manjusha Deshpande, dismissed the petition. They emphasized that the court's power could not be used to settle private contract disputes.
"The prerogative of writ of mandamus is confined only to compel performance of a public duty..." - Court Ruling
Lala's troubles began with an internal investigation following advice from SEBI in 2018. He was accused of sharing confidential NSE data, leading to his transfer and eventual firing. Despite accepting a settlement, Lala challenged the firing, but the court found no public law element in his case.
The court decided that Lala's firing was a private issue between him and the NSE and not something that involved public law. Therefore, the court dismissed his case.
